Press Releases

Washington, DC - U.S. Rep. Marc Molinaro (R-NY-19) today introduced the Affordable Childcare Act, a bipartisan bill that doubles three different tax credits that help working families access quality and affordable childcare. Rep. Molinaro introduced this bill alongside U.S. Rep. Sharice Davids (D-KS-03).

Specifically, this bill will:

• Double the Child and Dependent Care Credit: The maximum child and dependent care credit is currently $3,000 for one dependent or $6,000 for two or more dependents. Rep. Molinaro’s bill doubles the max credit for these two credits to $6,000 and $12,000 respectively, ensuring working families can still access child and daycare services even as costs rise.
• Double the Employer-Provided Childcare Credit: This tax credit offers employers a tax credit up to $150,000 per year to offset 25% of qualified child care facility expenditures and 10% of qualified child care resource and referral expenditures. Rep. Molinaro’s bill doubles the max credit amount to $300,000 to incentivize businesses to spend more on child care.
• Double the amount a person can contribute to a dependent care flexible spending account: This credit lets employees contribute pre-tax earnings toward qualifying caregiving expenses. Currently, the max an employee can contribute is $5,000 to the account. Rep. Molinaro’s bill doubles the cap to $10,000, meaning parents can save and utilize more pre-tax dollars for childcare.

Rep. Molinaro said, “Growing up, my family struggled to make ends meet. So I understand the difficult choices working families have to make to access quality child care when costs keep rising. That’s why I introduced this bipartisan bill to put more money in the pockets of working families and help them afford the child care services they deserve.”

Rep. Davids said, “Childcare is crucial for setting children up for success, but the high costs force many families to go without it, leading parents to work fewer days or incur unnecessary debt. Growing up with a single mom and limited resources, I understand how much of a difference extra budget flexibility can make. I’m proud to join Representative Molinaro in introducing this bipartisan bill to ensure hardworking families in Kansas and across the country can more easily afford childcare.”

This bill has been endorsed by The Early Care & Education Consortium (ECEC) and the First Five Years Fund.